The obvious lesson is that some countries must be doing something right while the " stick-in-the-mud " countries are "has- beens" and whats tragic is that they don't seem able to change. I mean who gives a stuff about medicare etc. when your life blood industries are on the ropes. If politicians wages were tied to the country's economic performance they WOULD care and how !!
Old merry England, eh? Um let say you actually have money and trade. Where you gonna put your money. Pound or USD. Have a looksie at this chart. Remember the markets discount for the future. So What is this saying about England? http://finance.yahoo.com/charts?s=GBPUSD=X#chart1:symbol=gbpusd=x;range=2y
Easiest trade in today's market. Here's a gift-----short the pound!!! For retail investors the symbol is FXB. Cheers!!! This round of drinks is on England. Hip, hip, hoorah!!!
off charts.gif This clearly illustrates why the Pound is overvalued due to that drastic drop in exports from Britian. It also shows why the Yuan/Remnibi is undervalued. These figures are based in USD. You can trade currencies off this chart. Short the Pound.
Why am I not surprised. Just visit UK and you will find out. I did and I found everyone wanting to be an officer. No one wants to work there. They want to watch cricket, eat at expensive restaurants, Tip very well, live large. For work, they want a job as financiers and money managers. It worked for a long time, but how long can this model really work? The very countries that became superpowers from the industrial revolution are the ones that are now de industrialized.
It seems you lack a basic understanding of finance. For the pound to go lower, there needs to be a GREATER THAN EXPECTED drop in its economy. The markets do discount the future, but for there to be a greater fall, things can only get worse. If the bleak future remains the same, the currency should remain the same.
O.K. Do not short the pound. My lack of understanding perhaps helps me. Trading is simple. I was trying to be nice. You can have the other side of my trade. Are we good on that for the record.
The pound is correlated to the euro. All it will take is a worsening crisis in the EU, or unfavorable terms from Merkel to Greece, Spain is next, to drop the pound. I will say USD could easily go to .82-.83 this week which will drop both of the above in the blink of an eye.